Bluegreen Extends time for Diamond.

[vintner Super Moderator Find all posts View Profile Close vintner]

Note-this is a short version of the full story that can be found at most stock news services.

BOCA RATON, Fla. - (Business Wire) Bluegreen Corporation (NYSE: BXG) (“Bluegreen”), a leading provider of Colorful Places to Live and Play®, announced today that it has agreed to extend until November 15, 2008 the period during which Diamond Resorts International has an exclusive right of negotiation to acquire all of the Bluegreen common stock at a price of $15 per share. The parties have agreed to continue to work to reach a definitive agreement for the acquisition of Bluegreen at the earliest possible time.

[crwisconsin Senior Member Find all posts View Profile Close crwisconsin]

BG Press Release

Check

http://phx.corporate-ir.net/phoenix....063&highlight=

[vintner Super Moderator Find all posts View Profile Close vintner]

The second part of the story just says they are going to contiue searching if no deal is reached by Dec 15. Financing may still be the big issue, as has been disucussed on this site.

"The parties have agreed that if, notwithstanding their efforts, a
definitive agreement is not reached by November 15, 2008, they will
continue to work towards such agreement until December 15, 2008, but
that during such period Diamond Resorts will no longer have an exclusive
right of negotiation and Bluegreen may actively seek and negotiate
alternative transactions."

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

This story is more than a month old, but supports the notion that financing is an issue: Diamond Resorts may have problems financing Bluegreen acquisition, industry bankers say.

It appears as if Cloobeck may be close to maxing out his financing.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

It appears as if Cloobeck may be close to maxing out his financing.

Or in current situation, everyone except Bank of American is max out their credit.

Jya-Ning

[vintner Super Moderator Find all posts View Profile Close vintner]

Wonder if it would help at all if the FOMC drops rates next meeting, as it sounds as they may?

[Spence Super Moderator Find all posts View Profile Close Spence]

This story is more than a month old, but supports the notion that financing is an issue: Diamond Resorts may have problems financing Bluegreen acquisition, industry bankers say.

It appears as if Cloobeck may be close to maxing out his financing.

Shades of 2002 Sunterra? but Cloobeck is a much better leader, manager, negotiator, financier.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

This financial market is very challenging to finance any large deals. Since Bluegreen set a timetable, we will know by Dec 15 whether or not there is a deal. It still seems bizzarre to me that there is an exclusive negotiating period, but there is also a "go shop" clause to see if there is a better suitor. At $15/share, I doubt that will happen. One thing is sure. Bluegreen is looking to get acquired for a strategic valuation. Not sure why given they so bitterly fought off the hostile takeover from David Siegel's company.

If you look at the stock, it dropped 5% and is now trading at $10.41. It closed at $6.44 before the announced letter of intent. Since the deal is at $15/share, the market is now giving it a 46% chance of happening. 54% chance of not happening.

[vintner Super Moderator Find all posts View Profile Close vintner]

Recent stock price high of 12.54 when announcement was made on 7-22, low price today (in this very down market) was 9.33.

Interesting that the all time high was 24.75 in March 4, 05. Same day had a low of 14.95. Earnings miss.

[schmidly Junior Member Find all posts View Profile Close schmidly]

Is Diamond good for Bluegreen?

We just bought additional points because we love Bluegreen so much - for the high quality and value...... what will it mean if Bluegreen is bought out by Diamond? I can't help but fear that thigns will change for the worse.....

[vintner Super Moderator Find all posts View Profile Close vintner]

We just bought additional points because we love Bluegreen so much - for the high quality and value...... what will it mean if Bluegreen is bought out by Diamond? I can't help but fear that thigns will change for the worse.....

There has been lots of discussion on that very question. Problem is, at this point, no one really knows. Diamond has purchased another company in the past, some felt is was good for the owners of the timeshare that was purchased as they have new resorts to use. Others didn't like the purchase because maintenance fees were increased, but it sounds as the fees needed to be raised to upgrade the property.

I also am concerned. I have owned BG since 2002 and like what we have. I have thought about buying more points, or selling some of my points. I don't know what to do at this point. And no one else knows what will happen either. Sorry for the lack of an answer.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

Shades of 2002 Sunterra? but Cloobeck is a much better leader, manager, negotiator, financier.

Maybe. If he's about to bite off more than he can chew, then I'd say the jury is still out.

Anytime you push your financing to the limit you're putting yourself on thin ice. DRI hasn't gained a firm grip on the old Sunterra yet. Expanding when it doesn't appear that you're on firm ground might not be the right thing to do.

IMO, the smart thing to do would be to back off if they banks are telling you no. If you have to fight to get financing, there should be a big red light flashing before you eyes that this may not be the thing to do.

Right now I'd just say S. Cloobeck is more dynamic and personable. I think the jury is still out on the rest.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

The market is now betting heavily against the deal happening at $15/share. BXG Closed at $8.85/share.

Given the meltdown of the financial markets, it's hard to imagine that strategic premiums will be paid for companies with exposure to residential real estate.

One analyst today on CNBC said that there is money for deals with superior balance sheets. I don't think a combined DRI and Bluegreen fits the bill as such a beast.

I think this deal is in jeopardy due to financing.

[VA_Traveller Senior Member Find all posts View Profile Close VA_Traveller]

The market is now betting heavily against the deal happening at $15/share. BXG Closed at $8.85/share.

Given the meltdown of the financial markets, it's hard to imagine that strategic premiums will be paid for companies with exposure to residential real estate.

One analyst today on CNBC said that there is money for deals with superior balance sheets. I don't think a combined DRI and Bluegreen fits the bill as such a beast.

I think this deal is in jeopardy due to financing.

It could also be in jeopardy due to $15 may be too high for BGX. BGX depends on new buyers and them getting credit. Its the rare client that walks in off the street and pays cash for Bluegreen's product. As funds to finance the timeshare's tightens, so will BG's bottom line.

[ace2000 Senior Member Find all posts View Profile Close ace2000]

What's the latest update on this news? Can anyone help please?

TIA